BLUES' bid to stave off Premiership relegation with a January transfer overhaul has seen them firm up their interest in MK Dons' striker Izale McLeod.

And that could spell disappointment for Championship neighbours Wolves, who have already had two bids rejected for the highly-rated 21-year-old.

McLeod, with 10 goals so far this season, is sure to leave the Dons during the transfer window after chairman Pete Winkelman reluctantly accepted having to cash in on his prize asset.

Wolves have already had two bids rejected, the second rising to a maximum #1.3million with add-ons, and are understood to be tweaking their offer to try to persuade the Dons to do business.

But that could prove futile now that both Blues and Fulham have stepped up their pursuit.

Born in Perry Barr, McLeod was on Villa's books as a youngster before getting his first break at Derby.

After two years at Pride Park, he stepped down a level to move to Milton Keynes with a gentleman's agreement that once he'd picked up the necessary experience he would be able to return to a bigger club when interest arose.

Eighteen goals last season, which went a long way to keeping the Dons in League One, has prompted that time to arrive and Blues are now at the head of the queue and poised to make their move.

Despite their current status, and the prospect of a New Year relegation battle in store, McLeod is expected to prefer a potential move to St Andrew's above Fulham, and Blues' superior spending power should be enough to see off the interest from Wolves.

Although unwilling to sanction a multi-million pound move for a striker like Andrew Johnson, Blues would be happy to fund a gamble on McLeod and offer him a more lucrative personal deal than would be on the table at Molineux.